The pendulum is swinging firmly back in buyers' favour across many markets, although affordability unsurprisingly remains a constraint
Canadian homebuyers are expressing renewed confidence in the housing market this fall, with 54% of Canadians believing now is “a good time to strike a deal” on a home, according to RE/MAX Canada’s 2025 Fall Housing Market Update released Wednesday.
The report, based on data from January 1 to July 31, 2025, reveals a national picture marked by regional variations and shifting dynamics following a period of consumer uncertainty in the first quarter.
Atlantic Canada and the Prairies recorded consistent year-over-year price gains across all surveyed markets, while Ontario and British Columbia saw declines in two-thirds of theirs. Home sales fell year-over-year in 62% of markets, with 64.8% of housing markets showing decreased activity.
“Canada’s real estate landscape paints a complex picture of resilience and caution, influenced by regional nuances and continued economic uncertainty,” said Don Kottick, president of RE/MAX Canada.
Western Canada reported mixed results, with Vancouver prices down 6.3% and Fraser Valley dropping 5.5%. In contrast, Prairie cities showed resilience, with Winnipeg rising 7.7%, Edmonton up 7.3%, and both Regina and Saskatoon increasing 7%.
First-time buyers take back seat
Buyer demographics have shifted. While first-time buyers led the market in 2024, they have pulled back in 2025, with families, newcomers to Canada, and retirees driving more activity.
First-time buyers are also trending older, typically entering in their late 20s to 40s, underscoring affordability challenges as well as the increasing complexity of entering the market, the report noted. Among those planning to buy within 12 months, 28% have saved at least 20% for a down payment, while 33% have set aside 15% or more.
The Leger survey found that 68% of prospective buyers said a 5% to 10% price drop would significantly affect their ability to purchase, while 64% would feel ready if interest rates fell by 0.5% to 1%.
Economic sentiment improves
Consumer sentiment is stabilizing, with 46% of survey respondents expecting economic stability in the next six months and 38% viewing the current economy as strong. Notably, 92% of homeowners continue to see their properties as solid long-term investments.
Looking ahead, 46% of Canadians express optimism that government commitments to expand housing supply will improve affordability within three to five years, signalling renewed hope for recovery.
Market outlook and seller confidence
RE/MAX Canada projects average national home prices will decrease 6.5% this fall, with sales expected to decline 5% for the rest of 2025. Despite this, seller confidence remains high, with 63% believing they can secure their asking price.
The report highlights a 25% surge in conditional sales across 33 of 37 surveyed regions, suggesting buyer confidence is being lifted by affordability improvements.
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